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Government To Amend Essential Commodities Act; Agriculture Products To Be De-regulated

While rolling out the third tranche of measures the Finance Minister stated that the Essential Commodities Act, 1955 will be amended

Finance Ministry

Finance Minister Nirmala Sitharaman on Friday announced the third tranche of economic measures under the Rs 20 lakh crore economic package to kickstart Indian economy's growth amid Coronavirus crisis. While rolling out the third tranche of measures the Finance Minister stated that the Essential Commodities Act, 1955 will be amended to help provide the farmers with a better price share.

A major change that will be brought through this amendment is the de-regulation of agricultural products such as edible oils, oilseeds, pulses, onions and potato have been deregulated. A stock limit will also be imposed under very exceptional circumstances and no such stock limit shall apply to processors or value chain participant. 

Read: NABARD To Extend Rs.30,000 Cr Refinance Support; Concessional Credit For Small Farmers: FM

Read: Centre Rolls Out 11 Measures For Farmers, Fishermen & Animals In Third Economic Tranche

Other Reforms in Govt & Administrative sector

Nirmala Sitharaman divided the 11 key measures under the third tranche into 8 pertaining to infrastructure and the remaining 3 pertaining to Government and administration reforms. The amendments of the Essential Commodity Act fall under the Government and administration reforms along with Agriculture marketing reforms to provide marketing choices and Agriculture produce price and quality assurance. The three main reforms under Government and Administrative sector include-

 

  • Agriculture marketing reforms to provide marketing choices

The Government will bring agriculture marketing reforms to provide marketing choices to farmers via a Central law. This will help provide adequate choices to farmers to sell products at an attractive price, barrier-free inter-state trade and a framework for e-trading of agriculture produce

  • Agriculture produce price and quality assurance

The Government will create a legal framework that will enable farmers for engaging with processors and aggregators, large retailers, exporters in a transparent way. Risk mitigation for farmers assured returns and quality standardization shall form an integral part of the framework.

Read:FM Sitharaman To Reveal 3rd Tranche Of PM Modi's Aatmanirbhar Bharat Package At 4 PM Today

Read: Finance Min Reveals Measures For Migrants, Stresses On Formalisation Of Unorganised Sector

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